INTERRENT REIT REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/OTTAWA, ON, March 2, 2026 /CNW/ - InterRent Real Estate Investment Trust (TSX:IIP) ("InterRent" or the "REIT") today reported financial results for the fourth quarter and full year 2025 ended December 31, 2025. Q4 2025 Highlights:Achieved 2.8% year-over-year ("YoY") growth in average monthly rent ("AMR") to $1,749 for the total portfolio, and 2.2% to $1,752 for the same-property portfolio for December 2025.December same-property and total portfolio occupancy rate increased by 10 basis points quarter over quarter ("QoQ") to 96.9% and was 10 basis points lower YoY.Executed 698 new leases during Q4, an increase of 9.9% in leasing volume compared to the same period last year.Q4 2025 same-property proportionate Net Operating Income ("NOI") increased 1.0% YoY to $39.9 million. Total portfolio proportionate NOI of $41.5 million declined 1.3% YoY, primarily reflecting a 4.0% reduction in total suite count.Same-property proportionate NOI margin was 66.4%, down 70 basis points from Q4 2024, reflecting a 3.0% YoY increase in utilities due to colder winter conditions, and a 4.9% YoY increase in property operating costs primarily due to higher marketing expenses. Total portfolio proportionate NOI margin decreased by 60 basis points to 66.5%.Funds from Operations ("FFO") of $19.6 million, or $0.140 per diluted unit, and Adjusted Funds from Operations ("AFFO") of $16.3 million, or $0.117 per diluted unit, reflecting $1.9 million in one-time transaction costs during the quarter related to the Arrangement Agreement.Adjusting for $1.9 million transaction-related costs, Normalized FFO ("NFFO") decreased by 7.3% to $21.4 million, with NFFO per diluted unit decreasing 1.9% YoY to $0.153.Normalized AFFO ("NAFFO") decreased 12.0% YoY to $18.2million, with NAFFO per diluted unit of $0.130 down 6.5% YoY, primarily due to higher maintenance capex from two large life-cycle projects, and the expansion of the repositioned portfolio, resulting in increased maintenance capital deductions.As at December 31, 2025, the REIT's Debt-to-GBV decreased by 30 basis points QoQ to 41.7%.2025 Fiscal Year Highlights: On May 27, 2025, entered into an arrangement agreement to be acquired by Carriage Hill Properties Acquisition Corp., an entity owned by CLV Group and GIC, in an all-cash transaction valued at approximately $4.0 billion including net debt. The transaction has received required unitholder, court, and regulatory approvals and is expected to close in the first half of 2026, subject to remaining closing conditions.Same-property proportionate NOI reached $158.1 million for the 12 months ended December 31, 2025, an increase of 2.1% from 2024. Total portfolio proportionate NOI down slightly from $165.9 million to $165.8 million.Same-property and total portfolio NOI margin of 66.2% for the year, a decrease of 90 bps and 80 bps, respectively, from record levels achieved in 2024.For the 12 months ended December 31, 2025, FFO was $72.3 million, or $0.511 per diluted unit. Adjusting for $17.1 million transaction-related costs, NFFO was $89.4 million, down 1.4% YoY, while NFFO per diluted unit of $0.632 increased 3.3% YoY.Delivered AFFO of $59.2 million for the 12 months ended December 31, 2025, or $0.418 per diluted unit. Adjusting for transaction-related costs, NAFFO per diluted unit decreased 0.7% YoY to $0.539, and total NAFFO of $76.3 million declined 5.3%.Completed the disposition of eight properties totalling 495 suites across three regional markets, generating net proceeds of $113.7 million before mortgage repayment.Brad Cutsey, President & CEO of InterRent, commented on the results:"We delivered stable performance in the fourth quarter, concluding another year of disciplined execution in a more competitive environment. While market conditions evolved during 2025, our focus on operational fundamentals was unchanged. As we progress toward the closing of our proposed transaction, our teams remain focused on serving residents and managing the portfolio with the same discipline that has defined InterRent over the years."Financial Highlights: Selected Consolidated InformationIn $000's, except per Unit amounts and other non-financial data3 Months EndedDecember 31, 20253 Months EndedDecember 31,2024Change12 Months EndedDecember 31, 202512 Months EndedDecember 31, 2024ChangeTotal suites 11,673(1) 12,160(1)-4.0 %Average rent per suite (December)$ 1,749$ 1,702+2.8 %Occupancy rate (December)96.9 %97.0 %-10 bpsProportionate operating revenues$ 62,381$ 62,614-0.4 %$ 250,603$ 247,718+1.2 %Proportionate net operating income (NOI)$ 41,493$ 42,021-1.3 %$ 165,845$ 165,880no changeNOI %66.5 %67.1 %-60 bps66.2 %67.0 %-80 bpsFull story available on Benzinga.com
